Advertisements are commonly used on the Internet to promote various products and services. Advertisements may comprise banner advertisements, links to web pages, images, video, text, etc. The various advertisements used to promote products on the Internet may be displayed according to a variety of formats, such as in conjunction with a ranked result set in response to a query, embedded in a web page, a pop-up, etc. The advertisements displayed to a user of a client device may be selected, redirecting the user to a website providing the product or service advertised.
Client devices, communicatively coupled to a network such as the Internet, are capable of searching for content, such as web pages, documents, etc., using one or more queries comprising one or more keywords as input to a search engine. The one or more keywords comprising the queries with which users search for content items may be used to retrieve one or more advertisements associated with the one or more keywords.
Advertisers may bid on the one or more keywords, including groups of related keywords. A search engine may utilize the bids associated with the one or more keywords to select one or more advertisements for distribution to client devices. Advertisers participating in such an auction-based keyword bidding system may face the daunting challenge of managing and optimizing the ongoing bid process, for example, managing and optimizing bids for thousands or millions of keywords or groups of keywords associated with one or more advertisements.
In order to overcome shortcomings associated with existing advertisement bid management techniques, embodiments of the present invention provide systems and methods for generating bid amounts that result in the greatest profit for one or more keywords associated with one or more advertisements.